Tax Revenues up 14.6% over 2004

Federal tax revenue has increased nearly 15% during 2005, according to a report by the Congressional Budget Office. Many politicans and economist think this will help reduce the federal deficit (Sharp Increase in Tax Revenue Will Pare U.S. Deficit - New York Times). The reason for the big increase? People and businesses are paying more estimated taxes than was expected. In fact, payments by corporations increased over 40%. The federal government has collected $204 billion more in taxes through June 2005 than it did in the same period in 2004. Could it be that the economy improving?